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Investors & landlords
<<"Our rental is not for profit, did not make enough to cover interest/taxes so we do not have to claim the income.">>
Not true. Not-for-profit income must be declared.
Per the IRS:
Report your not-for-profit rental income on Schedule 1 (Form 1040 or 1040-SR), line 8, or Form 1040-NR, line 21.
If you don’t rent your property to make a profit, you can’t deduct rental expenses in excess of the amount of your rental income. You can’t deduct a loss or carry forward to the next year any rental expenses that are more than your rental income for the year.
See "Not Rented For Profit" in this IRS reference:
https://www.irs.gov/publications/p527#en_US_2019_publink1000219164
Not that not-for-profit rental income is not reported on Schedule E.
**Answers are correct to the best of my ability but do not constitute tax or legal advice.
January 30, 2021
8:57 AM